Tesla announced its financial statement for the second quarter of 2021, and has surpassed US$1.1 billion in profit for the first time under a YoY growth of nearly 10 times, as well as exceeded the anticipation of the analysts pertaining to earning per share.
Although analysts had predicted a remarkable performance from Tesla, the financial statement of Q2 2021 announced by the company has indicated an even better result.
Wall Street analysts initially believed that Tesla was able to achieve a revenue of US$11.5 billion during the second quarter, but the figure had exceeded expectations and arrived at US$11.96 billion, while the estimated EPS of US$0.94 also came to a whopping US$1.45 (non-GAAP).
Tesla has achieved profitability for 8 consecutive quarters as of this quarter, and the net profit of US$1.14 billion that surpassed US$1 billion for the first time, which is a YoY increase of almost tenfold (998%), is a new record for the company. Investors are even more ecstatic at the free cash flow of US$619 million that completely subverted the forecast from external sectors.
The major factor behind the enormous revenue in the second quarter was undoubtedly the company’s historic delivery numbers, which reached a total of 200K units by the end of the quarter. The strong delivery performance also pushed its operating profit margin to 11%. The deliveries primarily consisted of the entry Model 3/Y that accounted for 199K units, while the high-end Model S/X merely occupied 1,890 units.
A sizeable sales performance in low cost vehicles is for sure one of the reasons behind the surging profit. As the production for the new variation of Model S/X gradually resumes, the total sales of Tesla for the third quarter is expected to increase once again.
Despite having reported profitability for 8 consecutive quarters, a lot of people are still thinking that Tesla is constantly making losses, and such impression from 3 years ago is now proven to be incorrect judging by the revenue structure of this quarter. The EV business alone had generated US$10.2 billion to the US$11.9 revenue, with a gross margin of 28.4%, and generated approximately US$2.9 billion of its profit. The profitability from the regulatory department continues to reduce, and merely arrived at US$350 million this quarter, which is a YoY decrement of 17%.
Tesla also revealed the forecast for its existing capacity. According to the current progress, the two factories in the US will produce 600K units this year, while Giga Shanghai factory is expected to produce over 450K units, which signals that the target of 1 million units within the year should be relatively easy. In addition, the company is also optimistic towards the construction progress for Giga Berlin and Giga Texas, and the two factories are expected to initiate the production of Model Y by the end of this year.
The new battery 4680 announced by Tesla, which is doubted by a large group of consumers, has entered the latter stage of testing. The last 10% now needs to be caught up to ensure the quality and stability of mass production. The distinctive structural packet of the new battery paired with the unibody of the vehicle has passed the internal impact test, which is reassuring.
The Cybertruck of Tesla is currently being produced at Giga Texas in accordance with the initial schedule, though the Semi has been postponed to 2022 due to issues from the supply chain and inadequate supply of batteries. Finally, regarding Bitcoin that many investors are interested in, Musk had previously stated that Tesla merely sold a small amount of the cryptocurrency to prove the feasibility of the particular mechanism, and recognized a loss of US$23 million in the financial statement this quarter.
(Photo source: Tesla)